Benchmark reiterates Buy rating on Dave stock, sees attractive entry point

Published 14/07/2025, 12:44
Benchmark reiterates Buy rating on Dave stock, sees attractive entry point

Investing.com - Benchmark has reiterated its Buy rating and $320.00 price target on Dave Inc (NASDAQ:DAVE), currently trading at $202.66 with a market capitalization of $2.69 billion, citing an attractive entry point following the stock’s recent pullback. According to InvestingPro analysis, Dave’s stock is currently trading above its Fair Value, despite showing strong revenue growth of 39% and maintaining a GOOD financial health score.

The financial services firm noted that Dave shares have declined more than 28% since July 3, creating a potential opportunity for investors who may have felt they missed the earlier rally from early April to early July. With the company’s next earnings report scheduled for August 6, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

Benchmark’s price target is based on a 22x EV/EBITDA multiple applied to its fiscal year 2026 estimated adjusted EBITDA of $218.5 million.

The firm pointed out that Dave currently trades at 13.4x FY26E EV/EBITDA, representing a discount compared to fintech lending peers.

According to Benchmark’s analysis, comparable companies SoFi Technologies (NASDAQ:SOFI), Upstart (NASDAQ:UPST), and Affirm trade at higher multiples of 15.5x, 22.8x, and 26.6x, respectively.

In other recent news, Dave Inc reported impressive first-quarter 2025 earnings, surpassing analyst expectations. The company achieved earnings per share of $2.48, significantly above the forecasted $0.75, and reported revenue of $108 million, marking a 47% year-over-year increase. This robust financial performance led to JMP Securities raising its price target for Dave Inc to $200, maintaining a Market Outperform rating. Additionally, Benchmark increased its price target to $320 from $229, continuing to rate the company as a Buy. Analysts highlighted the company’s adjusted EBITDA of $44.2 million, more than double the previous estimate. Operating expenses were reported at $72.8 million, which was better than anticipated. Dave Inc also raised its full-year 2025 revenue guidance to $460-$475 million, reflecting confidence in continued growth. These developments underscore the strong momentum and operational efficiency recognized by firms like JMP Securities and Benchmark.

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